DRAFT LEGISLATION

 The Illinois Mini-Randolph-Sheppard Act of 2005

Short Title

                Sec. 1 This Act may be cited as the “Illinois Mini-Randolph-Sheppard Act of 2005”.

 Definitions

                Sec. 2 (a) The following definitions in the Federal Randolph-Sheppard Act, 20 U. S. C. §107e., and Federal regulations, 34 C. F. R. §395.1, are hereby incorporated in this Act by reference:  “Blind licensee,” “Blind person,” “Cafeteria,” “Direct competition,” “Federal property,” “Individual location, installation or facility,” “License,” “Management services,” “Net proceeds,” “Nominee,” “Normal working hours,” “Other property,” “Permit,” “Program,” “Satisfactory site,” “Set-aside funds,” “State licensing agency,” “Vending facility,” “Vending machine income,” “Vending machine,” and “Vendor.”

            (b) In addition to the definitions set forth in subsection (a) of this section, the following terms apply to the provisions of this Act:

                        (1) “Assistant Chief” means the individual primarily responsible for the State’s management and operation of the Business Enterprise Program for the Blind.

                        (2) “Chief” means the individual in charge of the Bureau of Blind Services in the Department of Human Services.

                        (3) “Committee” means the Illinois Committee of Blind Vendors, an independent representative body for blind vendors established by the federal Randolph-Sheppard Act.

                        (4)  “Department” means the Department of Human Services.

                        (5) “Operator” means a self-employed blind person licensed by the Department to operate a vending facility.

                        (6) “Secretary” means the Secretary of the Department of Human Services.

                        (7) “State property” means all real property, or part thereof, owned, leased, rented, or otherwise controlled or occupied by any department or other agency or body of this state.

Purpose and Policy

            Sec. 3 (a) For the purpose of providing blind persons with remunerative employment, enlarging the economic opportunities of the blind, and stimulating the blind to greater efforts in striving to make themselves self-supporting, blind persons licensed under this Act shall be authorized to operate vending facilities on any property within this state as provided by this Act.  The Secretary, through the Chief, shall continue, maintain, and promote the Business Enterprise Program for the Blind.  Some or all of the functions of the program may be provided by a nominee agency.

            It is the intent of the Legislature that the Randolph-Sheppard Act, 20 U. S. C. §§107-107f., and the federal regulations for its administration set forth in Part 395 of title 34 of the Code of Federal Regulations, shall serve as minimum standards for the operation of the Business Enterprise Program for the Blind.  

            (b) With respect to vending facilities on state property, priority shall be given to blind persons, including the assignment of vending machine income as provided by this Act.  Departments and agencies shall not impose any commission, service charge, rent, or utility charge on a blind vendor operating a vending facility on state property.  In order to reduce financial burdens on state employees, blind vendors shall be exempt from the payment of sales taxes.  Departments and agencies shall not allow competition with a blind vendor from vending machines, coffee services, bake sales, or other fund raising or commercial mechanisms to operate in any state building.

            (c) With respect to vending facilities on federal property within this state, priority shall be given as provided in the federal Randolph-Sheppard Act, 20 U. S. C. §§107-107f., including any amendments thereto.  This Act, as it applies to federal property, is intended to conform to that Act, and is to be of no force or effect if, and to the extent that, any provision of this Act or any regulation adopted under this Act is in conflict with that Act.  Nothing in this section shall be construed to impose limitations on the operation of vending facilities on state property, or property other than federal property, or to allow only those activities specifically enumerated in the Randolph-Sheppard Act.

            (d) On all other property within this state, whether owned or controlled privately or by any county, city, city and county, or other political subdivision, the Department directly or by delegation shall take all feasible steps to encourage and establish vending by blind persons licensed under this Act.  The Department may enter into appropriate agreements with the entities or persons owning or controlling the other property.  All such agreements shall be in writing and shall be in conformity with this Act.

            (e) The Assistant Chief shall actively pursue all commissions from vending facilities not operated by blind vendors as provided in section 7(a)(2) of this Act,  and shall seek new placements of vending facilities on state property where a facility is not yet in place.

            (f) Partnerships and teaming arrangements between blind vendors and private industry, including franchise operations, shall be fostered and encouraged by the Department.

Implementation of Priority

             Sec. 4 (a)  In order to implement the priority declared in section 3(a), the Chief, directly or by delegation to the Assistant Chief, and the Committee shall jointly develop regulations to ensure the following:

                        (1) That priority is given to blind persons licensed under this Act and predecessor legislation (20 ILCS 2420, Blind Persons Operating Vending Facilities Act), including the assignment of vending machine income as provided in this Act.

                        (2) That one or more vending facilities shall be established on all state property to the extent feasible.  Where a larger vending facility is determined by the Chief and the Committee to be infeasible, every effort shall be made to place vending machines on such property whenever possible.  The Chief and the Committee shall take into account the following criteria when determining whether establishment of a vending facility is feasible:  (A) The number of state employees, visitors, and other potential facility customers on the property in a given period; (B) the size, in square feet, of the area owned, leased, occupied, or otherwise controlled by the state; (C) the duration the property is expected to be leased or occupied by the state; (D) whether establishment of a vending facility would adversely affect the interests of the state; and (E) the likelihood that the vending facility would produce an adequate net income for a blind vendor as determined by the average income of all blind vendors in the state.

            (b)  Any determination by the Chief, or by any department or agency controlling the property, that the placement or operation of a vending facility is not feasible, or that the placement or operation would adversely affect the interests of the state shall be in writing and shall be transmitted to the Committee for review and ratification or rejection.

            (c)  The Chief, through the Assistant Chief, subject to regulations developed and adopted pursuant to subsection (a) of this section and the requirements of federal law and regulations, is authorized to select a location for a vending facility and the type of facility to be provided.  

(d)  Upon the development of plans by any state department or agency to occupy, acquire, renovate, or relocate a property, such department or agency shall notify the Chief, who shall determine whether such plans include a satisfactory site or sites for one or more vending facilities.  

(e)  After January 1, 2006, no department or agency of the state shall undertake to acquire by ownership, rent or lease, or to otherwise occupy, in whole or in part, any property unless, after consultation with the head of that department or agency it is determined by the Chief in accordance with regulations developed pursuant to subsection (a) either (1) that the property includes a satisfactory site or sites for the location and operation of a vending facility by a blind person; or (2) that, if a building is to be constructed, substantially altered or renovated, or, in the case of a building that is already occupied on that date by the department or agency, is to be substantially altered or renovated for use by the department or agency, the design for the construction, substantial alteration or renovation includes a satisfactory site or sites for the location and operation of a vending facility by a blind person.  

(f)  The provisions of subsection (e) shall not apply when the Chief, in consultation with the Committee, determines that the number of people using the property is or will be insufficient to support a vending facility.  

Other Vending Facilities  

Sec. 5  The governing board of any county, city, city and county, or other political subdivision owning property, or persons or entities owning or controlling private property, are authorized and encouraged to construct or install on such property, or permit the construction or installation of, vending facilities for operation by blind persons licensed under this Act.  The amount of space allotted for this purpose shall be sufficient to serve adequately the number of persons to be served and to provide the kind of services to be rendered.  

Set-aside Funds and Trust Fund  

Sec. 6 (a)  The Department shall provide that, if any funds are set aside, or caused to be set aside, from the net proceeds of the operation of vending facilities by blind persons licensed under this Act, such funds shall be set aside only to the extent necessary in a percentage amount not to exceed that determined jointly by the Chief and the Committee and published in state regulation, and such funds may be used only for the following purposes: (1) Maintenance and replacement of equipment; (2) Purchase of new equipment; (3) Construction of new vending facilities; (4) Funding the functions of the Committee, including legal and other professional services; and (5) Retirement or pension funds, health insurance, paid sick leave and vacation time for blind licensees, if it is determined by a majority vote of the blind vendors after the Department provides to each vendor full information on all matters relevant to these purposes.      

(b) No set-aside funds shall be collected when monthly net proceeds of a blind vendors are less than one thousand dollars ($1,000).  This amount may be adjusted annually by the Chief and the Committee to reflect changes in the cost of living.  

(c)  The Department shall establish, with full participation by the Committee, the Blind Vendors Trust Fund as a separate account managed by the Department for the state’s blind vendors.  

(d) Set-aside funds collected from the operation of all vending facilities administered by the Business Enterprise Program for the Blind shall be placed in the Blind Vendors Trust Fund that includes set-aside funds from facilities on federal property, but with separately identified sub-accounts for funds from (1) federal, and (2) state and other facilities, as well as vending machine income generated pursuant to section 7(a) of this Act.  All such funds shall be available until expended, and shall not revert to the general fund or to any other state account.  

(e) It is the intent of the Legislature that the expenditure of set-aside funds authorized by this section shall be supplemental to any current appropriation or other funds available for these purposes and shall not constitute an offset or diminution of any appropriation or other funding sources.  

(f) An amount equal to ten percent of wages paid by a blind vendor to any employee who is blind or otherwise disabled shall be deducted from any set-aside charge paid by such vendor each month, in order to encourage blind vendors to employ blind and disabled workers and thus set an example for industry and government.  No such deduction shall be made for any employee paid less than the state or federal minimum wage.    

Vending Machine Income and Compliance  

            Sec. 7 (a) After January 1, 2006, all vending machine income from vending machines on state property shall accrue to (1) the blind vendor operating a vending facility on the property, or (2) in the event there is no blind vendor operating a facility on the property, to the Blind Vendors Trust Fund for use exclusively as set forth in section 6 (a) of this Act.  

            (b) The Secretary, directly or by delegation of authority, shall ensure compliance with this section and section 4 of this Act with respect to buildings, installations, facilities, roadside rest stops, and any other state property, and shall be responsible for the collection of, and accounting for, all vending machine income on such property.  The Secretary shall enforce such sections through litigation, arbitration, or any other legal means available to the state, and each department or agency of the state in control of such property shall be subject to such enforcement.  Failure of any department or agency to comply with an order of the Department may be held in contempt in any court of general jurisdiction.  

            (c)  Any limitation on the placement or operation of a vending machine by a department or agency of the state based on a determination that such placement or operation would adversely affect the interests of the state shall be justified in writing to the Secretary.  The Secretary shall promptly determine whether the limitation is justified.  If the Secretary determines that the limitation is not justified, the department or agency seeking the limitation shall forthwith remove such limitation.  

            (d)  The amount of vending machine income accruing from vending machines on state property that may be used for the functions of the Committee shall be determined annually by a two-thirds vote of the Committee, except that no more than 25 percent of such annual income may be used for such purpose, based upon such income accruing to the Blind Vendors Trust Fund in the preceding year.  The Committee may establish its budget and expend funds through contract or otherwise without the approval of the Department.  

Licenses  

            Sec. 8 (a) Licenses shall be issued only to blind persons who are qualified to operate vending facilities.  The continuing eligibility of a vendor as a blind person shall be reviewed biennially for partially sighted individuals or whenever the Chief has information indicating the vendor is no longer blind as defined in the Randolph-Sheppard Act.  

            (b)  Following agreement by the Chief, the Assistant Chief, and the Committee, the Secretary shall adopt and publish regulations providing for (1) the requirements for licensure as a blind vendor; (2) a curriculum for training, inservice training, and upward mobility training for blind vendors; and (3) a regular schedule for offering such training, classes for which shall be offered at least once per year.

             (c)  Each licensed issued pursuant to this section shall be for an indefinite period.  The license of a blind vendor may be terminated or suspended for good cause, but only after affording the licensee an opportunity for a full and fair hearing in accordance with the provisions of this Act.  

Committee of Blind Vendors  

            Sec. 9 (a) The Chief, through the Assistant Chief, shall provide for the biennial election of the Committee, which shall be fully representative of all blind licensees in the state.  There shall be no fewer than one committee member for each 15 licensed blind vendors in the state.   

            (b)  The Committee is empowered to hire staff; contract for consultants including, but not limited to, legal counsel; set agendas and call meetings; create a constitution and bylaws, subcommittees, and budgets; and do any other thing a not for profit organization may do.  At the discretion of the Committee major issues may be referred for initial consideration to a subcommittee, or to all blind vendors, in order to ascertain their views.  The Committee is not a state agency, board, or commission, and therefore is not subject to state ethics, sunshine, or procurement laws.  

            (c)  The Secretary shall ensure that the Committee jointly participates with the state in the development and implementation of all policies, plans, program development, and major administrative and management decisions affecting the Business Enterprise Program for the Blind. The Chief, through the Assistant Chief, shall provide to the Committee all relevant financial information and data, including quarterly and annual financial reports, on the operation of the vending facility program in order that the Committee may fully participate in budget development and formulation, the setting of set-aside levels, and other program requirements.   A copy of all completed audits, reports, and investigations affecting the Business Enterprise Program for the Blind shall be timely distributed to the Committee.  Any implementation of changes in administrative policy or program development that is within the discretion of the Department shall occur only after review by the Committee.

 Hearings and Arbitrations  

            Sec. 10 (a)  Any blind vendor dissatisfied with any action or omission arising from the operation or administration of the vending facility program may submit to the Assistant Chief a request for a full evidentiary hearing, which shall be timely provided by the Department.  Damages, including compensatory damages, attorneys’ fees, and expenses are hereby authorized to be paid to a successful blind vendor in such actions, but payment of such damages shall be paid from the general funds of the state treasury and not from program funds, the Blind Vendors Trust Fund, or federal rehabilitation funds.  If such blind vendor is dissatisfied with any action taken or decision rendered as a result of such hearing, the vendor may file a complaint for arbitration with the federal Secretary of Education.  

            (b)  If the Secretary determines that any state department or agency has failed to comply with the requirements of this Act, the Secretary is empowered and directed to establish a panel to arbitrate the dispute, and the decision of the panel shall be final and binding on the parties.  Any arbitration panel convened by the Secretary shall be composed of three members, appointed as follows:

                        (1) One individual appointed by the Secretary;

                        (2) One individual appointed by the department or agency determined by the Secretary not to be in compliance; and

                        (3) One individual, who shall serve as chairman, jointly designated by the members appointed under paragraphs (1) and (2).  If within 30 days following the Secretary’s determination of noncompliance, either party fails to appoint a panel member or if the parties are unable to agree on the appointment of the chairman, the Secretary shall select the panel member, or may designated a hearing officer of the Department, who shall preside.  

            (c)  The Assistant Chief may issue a letter of reprimand to a blind vendor who violates program regulations or policy.   Depending upon the seriousness of the alleged violation, the letter of reprimand may indicate the intention to suspend or terminate the license of the blind vendor.  All such letters shall be sent in a medium accessible by the vendor, and shall be sent certified mail, return receipt requested.  The Assistant Chief shall make every reasonable effort to assist the subject blind vendor to correct any problem for which the vendor is reprimanded.  No process to suspend or terminate a license shall be initiated before the vendor is accorded the opportunity for a full evidentiary hearing as provided under subsection (a).  A blind vendor may be summarily removed from facility only in an emergency.  

General Provisions  

            Sec. 11 (a) Each blind vendor operating each vending facility is subject to the provisions of any ordinance of the county or city in which the facility is located that requires a license or permit for the conduct of such business, but any such license or permit shall be issued free of charge to a blind person licensed by the Department, and shall not be unreasonably withheld.  

            (b)  Blind persons licensed pursuant to this Act are authorized to keep guide animals with them while operating vending facilities.  

            (c)  The Chief, Assistant Chief, and the Committee shall develop jointly regulations to be promulgated by the Department regarding life standards for vending facility equipment.  Such regulations shall include, but shall not be limited to, life expectancy of equipment; time periods within which equipment shall be replaced; exceptions to such time periods for equipment with no service problem history, or that which experiences excessive failures not the fault of the operator.  

            (d)  The Secretary, through the Chief, shall assign adequate personnel to carry out duties related to the administration and management of the Act.  In selecting personnel to fill any program position under this subsection, the Secretary shall ensure that the Committee has full advance opportunity to review such selections, and to submit comments thereon, as well as on the adequacy of staffing levels for the program.  

            (e) The Assistant Chief shall provide to each blind vendor access to all financial information, access to his or her performance ratings, and all other individual personnel documents and data maintained by the Department, and shall provide a written copy of all rules and policies adopted pursuant to this Act to each blind vendor.  Upon request, such information shall be furnished in the medium most accessible by the blind vendor.  

            (f)  The surviving spouse of a blind vendor who dies during the operation of a vending facility under this Act may continue to operate such facility for a period of six months following the death of the vendor, provided such spouse is qualified by experience or training to operate such facility.  

Program Regulations  

            Sec. 12 (a)  The Secretary shall promulgate and adopt necessary regulations, and do all things necessary and proper to carry out this Act.  The Secretary by delegation shall review these regulations with the Committee at least every three years. 

            (b)  Such regulations shall include, but not be limited to, the following: (1) Uniform procedures for vendor licensing and termination; (2) Criteria and standards for selecting vendors and matching vendors to facilities to ensure that the most qualified person is selected; (3) Equipment life standards and service standards for the inventory, repair, and purchase of equipment; (4) Minimum requirements for establishment of a vending facility; (5) Standards for training, in-service training, and upward mobility; and (6) Policies and procedures for collection, deposit, reimbursement, and use of all program income, including vending machine income.  

Property Survey and Report  

            Sec. 13 (a) The Department shall make a survey and complete a report on state buildings and vending facilities not later than December 31, 2005 containing the following information:

                        (1) A list of all state property and all federal buildings or other property within the state which does or reasonably could accommodate a vending facility as provided for in this Act or in the federal Randolph-Sheppard Act.

                        (2) For those buildings or locations which have vending facilities or vending machines in place, an indication of which facilities are operated by licensed blind vendors under the Business Enterprise Program for the Blind and which are operated by private entities.

                        (3)  For those vending facilities or vending machines operated by private entities, an indication of those from which commissions for the Business Enterprise Program for the Blind have been or are being collected.

                        (4)  For those buildings or other property which do not have vending facilities in place, an indication of those in which a vending facility would appropriately be placed, or the reasons why a vending facility is not feasible in such building or property.  

            (b)  The Department shall obtain all available information and conduct a survey, in every odd numbered year before June 30 of such year, such survey to include, but not be limited to the following:

                        (1) The number and identity of buildings owned, leased, acquired or occupied by the state;

                        (2)  The number and identity of those state buildings on which vending facilities or vending machines  are located;

                        (3)  The number of employees located in such buildings and the number of people visiting such buildings, during normal working hours;

                        (4) The usable interior square footage of the building; and

                        (5) Such other information as the Department may determine is useful in expanding the Business Enterprise Program for the Blind to the maximum extent feasible.  

            (c)  All departments and agencies controlling state buildings or parts thereof in which vending machines or vending facilities are located shall cooperate with the Department by providing information from the entities having custody and control of any vending machines or facilities, including, but not limited to, the terms of contracts for vending including financial terms, and the disbursement practices for vending machine income.  The Department shall incorporate such information in its reports and updates.  

            (d)  The Department shall utilize the reports and updates mandated by this section to develop greater opportunities for the placement of blind vendors, increasing vending machine income to the program, and establishing vending machines and facilities on state property.   

            (e)  The reports and surveys prepared pursuant to this section shall be provided to the Committee and to the appropriate committees of the Legislature.      


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